DoorDash (ticker: DASH), the leading restaurant delivery service, reported exceptional financial results for the third quarter and provided a bullish forecast for the fourth quarter, surpassing Wall Street estimates. Despite consumers cutting back on expenses, it seems that they are still opting to order food delivery.
After the announcement, DoorDash's shares surged by 7.3% in after-hours trading to $81.40.
Impressive Q3 Performance
During the third quarter, DoorDash recorded revenue of $2.2 billion, representing a 27% increase compared to the same period last year. This figure surpassed the Wall Street consensus estimate of $2.1 billion. The company also showed progress in reducing losses, with a loss of $75 million in Q3, compared to a loss of $172 million in Q2 and $296 million a year ago.
Adjusted Ebitda, which stands for earnings before interest, taxes, depreciation, and amortization, amounted to $344 million—a significant improvement from $279 million in the second quarter and $87 million in the previous year.
Furthermore, DoorDash reported a total of 543 million orders in Q3, indicating a 24% growth rate and surpassing FactSet's consensus estimate of 520 million. The marketplace gross order value reached an impressive $16.75 billion, a 24% increase compared to last year and higher than the projected $16.1 billion.
DoorDash proudly declared that this was their best quarter since going public in terms of gross order volume, revenue, GAAP net loss, and adjusted Ebitda. Additionally, the company experienced double-digit growth in monthly active users during September.
Fourth Quarter Outlook
Looking ahead to the fourth quarter, DoorDash has a positive outlook, projecting Marketplace gross order volume to range between $17 billion and $17.4 billion. This forecast surpasses the Wall Street consensus of $16.6 billion. The company also expects adjusted Ebitda to range from $320 million to $340 million, well above the consensus estimate of $249 million.
In conclusion, DoorDash has delivered impressive financial results for Q3, outperforming expectations and displaying strength amidst challenging market conditions. With a positive fourth-quarter outlook and a solid customer base, DoorDash is well-positioned for continued growth and success in the restaurant delivery industry.
